Otter Tail Corporation (OTTR)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	377,919	362,780	357,797	372,810	390,439	406,657	365,052	303,808	249,708	206,508	184,709	152,796	147,886	151,164	135,690	134,600	134,880	127,050	128,057	131,343
Long-term debt	US$ in thousands	824,059	823,998	823,941	823,882	823,821	823,760	823,699	734,074	734,014	594,619	624,540	624,485	624,432	764,274	724,389	724,318	689,581	590,015	590,063	590,022
Total stockholders’ equity	US$ in thousands	1,443,010	1,402,930	1,328,440	1,263,780	1,217,320	1,184,020	1,116,540	1,047,140	990,777	952,482	915,123	887,866	870,966	852,070	822,055	800,019	781,482	756,505	744,305	740,499
Return on total capital		16.67%	16.29%	16.62%	17.86%	19.13%	20.25%	18.81%	17.06%	14.48%	13.35%	12.00%	10.10%	9.89%	9.35%	8.77%	8.83%	9.17%	9.44%	9.60%	9.87%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $377,919K ÷ ($824,059K + $1,443,010K)
= 16.67%

Otter Tail Corporation's return on total capital has shown fluctuations over the past eight quarters. The return on total capital ranged from a high of 20.25% in Q3 2022 to a low of 15.91% in Q1 2022. Overall, the return on total capital has been relatively stable, with the most recent quarter (Q4 2023) showing a return of 16.09%. This indicates that the company is generating a return of approximately 16% on its total capital investment. It is important to monitor this ratio over time to assess the company's efficiency in generating profits relative to the capital invested in its operations.